With more than 5,000 mutual funds on the market, no one with a day job can begin to sort through them all. Unfortunately, most funds don’t earn their keep—that is, they return less than good index funds. Identifying and monitoring the few that are superior is our job. Just as there are outstanding architects and baseball players, we think some fund managers possess the intelligence, savvy and corporate culture to beat most competitors. By crunching the numbers, talking to managers and reading fund semi-annual reports, we try to select those that are exceptional. In sectors with no standouts, we choose index funds or Exchange Traded Funds (ETFs).